September 2021

PepsiCo Canada Sustainability

C O N F I D E N T I A L & P R O P R I E T A R Y P A G E 2

For Our Discussion Today

• PepsiCo’s mission and using our scale for good

• PepsiCo’s progress against our sustainability goals

• Packaging and recycling update

• The future of PepsiCo’s approach to sustainability with pep+

C O N F I D E N T I A L & P R O P R I E T A R Y P A G E 3

Corporations increasingly expected to become critical agents for societal change

Sustainability is a critical priority for consumers and society

We are in the ‘Decade of Action’ with accelerated focus on sustainability

68% of consumersagree or strongly agree that food and beverage brands can be leaders in protecting the environment(Mintel)

Radical system interventions and strong collaboration is needed to solve shared global issues

Investors signalling a change in attitude and willingness to

enable transition

More than 70% of consumers want to be sustainable and believe they can have an impact, but often don’t know how to identify and trust sustainable products.” (EY-Parthenon Sustainability Survey)

C O N F I D E N T I A L & P R O P R I E T A R Y P A G E 4

PepsiCo is helping to build a more sustainable food system

Create more smiles with every sip and every bite

Be the global leader in convenient foods and beverages by winning with purpose

FASTERWinning in the marketplace, being

more consumer-centric and accelerating investment for topline

growth

STRONGERTransforming our capabilities, cost, and culture by operating as one PepsiCo,

leveraging technology, winning locally and globally enabled

BETTERIntegrating purpose into our business

strategy and our brands, and doing even more for the planet and for our people

MISS ION

VIS ION

THEPEPSICO

WAY Integrating purpose into our business strategy and our brands, and doing even more for the planet and for our people

HELPING TO BUILD A MORE SUSTAINABLE FOOD SYSTEM

C O N F I D E N T I A L & P R O P R I E T A R Y P A G E 5

We aim to use our scale for good

We aim to use our scale for good and are targeting every stage of our complex value chain to use resources more efficiently, reduce emissions, replenish water, improve our products, and recapture packaging materials

We source crops from 60 countries, promoting sustainable standards as we support 100,000 jobs in and throughout our agricultural supply chain.

We bring together innovators and operations teams who work to use water, energy, and ingredients efficiently to create our foods and beverages.

We’re reducing GHG emissions with carbon-efficient delivery trucks and programs that improve fleet efficiency.

We’re offering consumers more food and beverage choices and reducing added sugars, sodium, and saturated fat in many of our products.

We're helping to drive the shift to a circular economy and a world where plastics need never become waste.

R&D, Manufacturing, and Packaging

Agricultural Sourcing Distribution Consumption

Post-Consumer23

billion-dollar brands

$67Bnet revenue in 2019

Products enjoyed

1B+times each day

260K+associates worldwide

Products sold in

200+countries and territories

C O N F I D E N T I A L & P R O P R I E T A R Y P A G E 6

PepsiCo is actively working towards ambitious sustainability goals

AGRICULTURECLIMATE PACKAGINGWATER

• Reduce absolute carbon emissions for our entire value chain by 40% by 2030

• Aligned to the Business Ambition for 1.5°C pledge

• Net-zero by 2040;98.1% of waste was diverted from landfills in 2020 for Canadian direct operations

• Improve water use efficiency in high-risk water areas by 25% by 2025

• Replace 100% of the water we consume in high-risk water areas by 2025

• Achieve world-class water-use standards at all company-owned and third-party facilities by 2030

• Adoption of regenerative agriculture over 7MM acres

• Improving the livelihoods of 250,000 people in agricultural communities

• Sustainably source 100% of our direct sourced ingredients and key 3rd party sourced crops

• Design 100% of our packaging to be recyclable, compostable or biodegradable by 2025

• Reduce the use ofvirgin plastic across beverages by 35% by 2025

• Use 25% recycled content in our global plastic packaging by 2025

• Increase recycling rates across the world

PRODUCT PEOPLE

• Reduce added sugars, sodium, and saturated fats throughout our product portfolio by 2025.

• In Canada, nearly 60% of our beverage portfolio offers 100kcal or less of added sugar per 355ml serving.

• Achieve gender parityin mgmt. roles by 2025 and sustain pay equity

• Invest $100MM by 2025 in women empowerment

• Drive fair & safe working conditions

• Invest $845MM over five years to uplift Black and Hispanic business and communities & increase Black and Hispanic representation at PepsiCo

C O N F I D E N T I A L & P R O P R I E T A R Y P A G E 7

Canada Sustainability Activities

AGRICULTURECLIMATE WATER

• Continuing to optimize our routes to reduce fuel consumption, mileage, and trucks on the road

• Begin introducing electric delivery trucks to our fleet by 2023

• Expand onsite solar generation

• Prioritizing sustainably sourced crops in Canada including Canadian potatoes and corn

• Making progress toward new PepsiCo Net Water Positive Vision and meet world-class water-use standards at all company-owned and third-party facilities by 2030

C O N F I D E N T I A L & P R O P R I E T A R Y P A G E 8

PACKAGING ACTIVE RECYCLING PARTNER

Sustainability Actions Impacting Communities

Compostable film packaging pilot in plan for US and being

explored for Canada

Multiple brands moving into rPET

• Founding member of Circular Materials Ontario to help the industry meet its obligations under the new EPR regulation

• Active advocate and industry leader in beverage container recycling programs in all provinces across Canada

C O N F I D E N T I A L & P R O P R I E T A R Y P A G E 9

C O N F I D E N T I A L & P R O P R I E T A R Y P A G E 1 0

Transform the way we create value by operating within planetary boundaries and inspiring positive change for planet and people in the global food system

POSITIVE AGRICULTURESOURCE crops and ingredients in a way

that accelerates regenerative agriculture and strengthens farming communities

POSITIVE VALUE CHAINMAKE products in a way

that builds a circular, inclusive economy

POSITIVE CHOICESINSPIRE people through our brands to make choices that create more smiles

for them and the planet

Thank you!